The holiday shortened week began with the Euro opening firmer due to two news stories from different ends of the globe. First the EU helped lay out concrete plans in accord with the IMF to provide a safety net for the financially over burdened Greece. Secondly, an explosion on a South Korean naval vessel which exploded in a disputed area with North Korea was deemed to not be the results of any aggression from the North. Combined, the news helped traders shed their risk adverse skin and get back into riskier currency trades, most notably the Euro.
EUR/USD opened almost 70 pips higher than Friday’s 1.3408 close, and continued to session highs just over 1.3490. EUR/JPY jumped 50 pips to a 124.56 open and subsequent 124.65 high. While other pairs did not gap on the open the moves higher in risk were all similar. AUD/USD was able to break the 0.9085 level after comments from the RBA Governor Glenn Stevens stating that rates were too low and could not remain at those levels helped boost the Aussie currency against the dollar.
EUR/CHF made some impressive moves as Euro short covering pushed the pair from 1.4265 to 1.4355 over the course of the day. The USD/CHF saw comparable moves as the pair grew from 1.0580 to 1.0690 highs. USD/JPY remained quiet between 92.35 and 92.75 despite fine retail sales data that came in at +4.2% versus the expected 1.7%.
The week will be shortened by the Good Friday Holiday, but that will not curtail the data that is on tap for the week in Asia, including Aussie retail sales, and trade balance, as well as Japanese Tankan results due out on Thursday. Australia and New Zealand will be closed on Friday.